Question

De LM CALCULATOR PRI Problem 10-3A a, b, c (Part Level Submission) (Video) Ratchet Company uses budgets in controlling costs. The August 2020 budget report for the company's Assembling Department is as follows. RATCHET COMPANY Budget Report Assembling Department For the Month Ended August 31, 2020 Difference Favorable Unfavorable Neither Favorable nor Unfavorable Manufacturing Costs Budget Actual Variable costs Direct materials Direct labor Indirect materials Indirect labor Utilities Maintenance Total variable Fixed costs Rent Supervision Depreciation $49,600 $48,500 $1,100 Favorable 57,040 54,040 3,000 Favorable 27,280 27,580300 Unfavorable 22,320 21,910 410 Favorable 15,500 15,390 110 Favorable 7,440 7,630 190 Unfavorable 179,180 175,050 4,130 Favorable 11,500 11,500 17,100 17,100 7,100 7,100 35,700_35.700 -0- Neither Favorable nor Unfavorable -0- Neither Favorable nor Unfavorable -0- Neither Favorable nor Unfavorable -0Neither. Favorable ner Unfavorable Total fixed

Answer 1

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Part a	$35,700+$2.89 per unit
Part b
		Budget at	Actual Costs	Favorable F
Units		60,000 Units	60,000 Units	Unfavorable U
Variable costs
Direct materials	$49,600/62,000*60,000	$              48,000	$              48,500	$                         500	U
Direct labor	$57,040/62,000*60,000	$              55,200	$              54,040	$                      1,160	F
Indirect materials	$27,280/62,000*60,000	$              26,400	$              27,580	$                      1,180	U
Indirect labor	$22,320/62,000*60,000	$              21,600	$              21,910	$                         310	U
Utilities	$15,500/62,000*60,000	$              15,000	$              15,390	$                         390	U
Maintenance	$7,440/62,000*60,000	$                7,200	$                7,630	$                         430	U
Total variable	$2.89*60,000	$            173,400	$            175,050	$                      1,650	U
Fixed costs
Rent		$              11,500	$              11,500	$                             -	None
Supervision		$              17,100	$              17,100	$                             -	None
Depreciation		$                7,100	$                7,100	$                             -	None
Total fixed		$              35,700	$              35,700	$                             -	None
Total costs		$            209,100	$            210,750	$                      1,650	U